Between the lower interest rates, government bailouts, and economic challenges present during the current pandemic, real estate investing is likely to be heavily impacted, at least during the short term. In some cases, real estate investors may find themselves with unexpected opportunities, while other scenarios present difficulties.
While it’s not totally clear exactly how investment properties will be affected as yet, there are some likely changes that will occur.
The COVID-19 outbreak has affected everyone, including landlords and their tenants. During this time, it’s important for both to know their rights and follow the laws governing landlord-tenant relationships, including the temporary restrictions currently in place.
If you own or operate rental property, it’s important to make sure you stay well within legal requirements and guidelines. Otherwise, you expose yourself to lawsuits.
Real estate investors may at times find themselves looking at properties that meet their requirements in all but one aspect—zoning. The zoning laws that apply to a given piece of property can restrict what you do with it, and it may be tempting to try to rezone it.
Here, we’ll go over the factors to consider before trying to rezone a property.
While Illinois doesn’t have any strict legal requirement to have an attorney present during real estate closings, hiring one is still a good idea. A real estate attorney helps you throughout the process of buying or selling real estate by:
Real estate transactions involve many details and moving parts, including house purchase agreements. Whether you’re buying or selling, you’ll have to keep those details in mind, including the overall condition of the building. For this reason, a home inspection will typically be needed.
Given the fees and costs associated with the process, many people may wonder whether a home inspection is actually necessary. The short answer is that it is, but it can get a little more involved than that.
Strict Requirements
Whether you are an experienced real estate investor or just getting your feet wet, there are many ways to turn a profit. Some of these ways are long-term, while others result in quick revenue. The approaches you choose will depend on your experience, resources, and objectives with respect to real estate investing.
Buy and Hold
One common strategy for real estate investment is buying and holding property. This is done with rental property—you purchase a house or multi-family unit and lease it out to tenants. This can bring in a great deal of revenue, but it also has its own associated expenses. You take on numerous responsibilities, such as keeping the property maintained, as well as a certain amount of liability, such as making sure tenants don’t diminish the property’s value overmuch.
When you own real property, there will arise certain difficulties over the years, and it’s important to be prepared to deal with them. These often take the form of property disputes, which may be between you and a neighbor, but could also involve contractual and title issues, such as when you’re purchasing a property.
We’ll go over some of the most common property disputes and discuss how to handle them.
Title and Boundary Disputes
Commercial real estate transactions are highly complex processes involving large amounts of negotiation. The purchase contracts involved in these transactions are often highly detailed, and they vary significantly from property to property. What may be the case for one property may not be the same for another.
In addition, the parties involved in the transaction vary as well, and that can have a large impact on how the contract looks by the end. If there’s an imbalance of power, for instance, one side may get what it wants while the other has to deal with the consequences.
Regardless of the circumstances, there are several keys to drafting an effective commercial real estate contract.
Obtaining Commercial Property in Illinois
Obtaining commercial property in the state of Illinois is a multi-step process that requires both sound planning and thorough due diligence. There are many items to keep in mind over the course of this process that will make sure you get the most out of your investment.
Here, we’ll go over a number of priorities to be aware of when obtaining commercial property in Illinois.
Overall, commercial real estate is a pretty good investment, but you have to handle it wisely. As with any investment venture, there will be challenges to face and pitfalls to avoid, so it always helps to have a good idea beforehand what to expect.
Whether you’re getting started in commercial real estate investing or if you’ve been at it for a while, the following common mistakes can help you avoid losses.
Failure to Match Property to Your Needs
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